Although payday loans are as their name describes them, loans, it might be easier to think of them as advances. With regular loans we are accustomed to thinking that we should have a long time to pay them back, as we do with bank loans. However with payday loans that is not the case, they are short term loans which are to be paid back with your next pay cheque. In this sense then, they are more like an advance on your pay cheque, rather than a loan.

With payday loans you can get cash fast.

Advances are rarely given on pay cheques these days, as it is usually computerised and has the PAYE system built in. In any case, employers are understandably resistant to give advances as there is always a chance that something could go wrong and you will not be able to work the requisite hours to make up for what you have been paid for. So if you are not able to get an advance, then you can always get a payday loan instead.

A payday advance works in the same way as an advance on your salary, as you will have to pay the advance back when you are next paid. It might not be all of it of course, depending on how much you choose to take out as a payday advance. In any case, this is probably the cheapest option when it comes to a short term loan, assuming of course you can’t get an actual advance on your wages. In most cases, apart from borrowing from friends and family, the only other option is taking out an unauthorised overdraft. This will allow you to get money fast, but it is very expensive. There are often daily as well as monthly charges, and you could end up paying far more than you have to.

With a payday loan, although it works like an advance in many ways, it costs about the same as a normal loan. If you simply look at the APR you might think that you will be paying a lot more, but you should consider that you will be paying it back in a lot less than a year, so the annual percentage rate for the loan really does not apply. Also, with Payday Loans UK there is a fixed amount that you have to pay, depending on how much you take out, so you know exactly what you will have to pay back before you get the payday loan.

Payday loans are useful in any situation in which you would require a payday advance. This means any emergency situation of moderate value that could be dealt with if you had your next month’s salary now. For example emergency car repairs, or to pay a bill that needs to clear urgently. If you are experiencing either of these situations, or any other situation in which you need emergency cash, then consider a payday loan from Payday Loans UK.

Tags: APR, bank loans, emergency car repairs, payday advance, Payday Loans, Payday Loans UK, paye, salary, short term loans, unauthorised overdraft

Written by tZiegler

Tony Spiel has years of experience in financial matters, especially in the payday loan market. In his off time he is a keen scuba diver.

Comments are closed.